Apple rejects European decision to return 13 thousand mde to Ireland – Economy

Luxembourg Apple denounced on Tuesday the decision of Brussels to force him to return to Ireland 13 billion euros (14 thousand 300 million dollars) of undue tax advantages, a sanction that according to the technology giant "defies common sense."

"Has Apple designed and developed the iPhone in Ireland? The iPad or iPod? No! The answer is written on every Apple product: 'Designed by Apple in California,'" said Daniel Beard, the company's company representative. California before the General Court of the European Union, in Luxembourg.

"Apple pays its taxes and understands the importance of doing so. We think that Apple is the largest contributor in the world," he added to defend the group's arguments against the European Commission's decision, published in August 2016.

The EU's request "challenges reality and common sense," said Beard. "The decision of the Commission has to be annulled," he added.

The hearing, which will last two days, began shortly after 09:30 local (07:30 GMT) in the presence of numerous journalists.

The European Commissioner for Competition, Margrethe Vestager, announced this request for reimbursement on August 30, 2016, after two years of investigation, a decision "political garbage" by the employer of the company of Cupertino (western United States) Tim Cook

According to the investigation, Apple regrouped in Ireland between 2003 and 2014 all the income obtained in Europe (as well as in Africa, the Middle East and India) because in that country it had a preferential tax treatment.

The group would have thus avoided paying the majority of the taxes that it should have paid during that period, some 13 billion euros, something that for Brussels constitutes an illegal "State aid".

Rewrite Apple history in Europe?

These revenues went to a "headquarters" outside the country, a "ghost" that Dublin refused to examine. Nothing illegal, however, under Irish law.

As these billions of non-taxable benefits in Ireland were not repatriated to the United States, Apple was spared paying those taxes for several years.

The company considers, however, that Brussels's analysis of the case has bulk errors.

"The European Commission tried to rewrite Apple's history in Europe, ignore Ireland's tax laws and, in doing so, disrupt the international tax system," Cook estimated in 2016.

The group argues that, according to international rules, it must pay most of its taxes in the United States, where it invests in research and development and therefore creates wealth, not where it makes sales.

Apple also notes that since the tax reform launched at the end of 2017 by Donald Trump, the group repatriated to the United States the benefits accrued over the years abroad, committing to pay the corresponding taxes.

The company benefits from a tax rate of less than 35 percent that was previously in force in the United States, but must also face a tax debt of about $ 37 billion in recent years.

The representatives of Ireland assured for their part Tuesday that the Commission is "fundamentally" wrong and that it would have "ignored Irish law".

"Solid Case"

Apple claims to have provided that amount in its accounts every year, aware that one day it should be paid.

Ireland supports the company created by Steve Jobs in its fight. Dublin also appealed the decision of the Commission and refuses to be presented as a tax haven.

"We will present a very solid case," promised Irish Finance Minister Paschal Donohoe.

The two days of views take place in a tense commercial context between the EU and the United States, where the president of Donald Trump reproaches the Europeans for their offensive against the country's technology giants.

Pending the court decision, Apple blocked the amount claimed in an account. The group, present in Ireland since the 1980s, employs about 6,000 people in Cork (south), the country's second city.